Pizza Today - May 2017 - 51

be traced to a host of other
factors as well, including
regionality and seasonality,
supply-side issues such as
weather, production shutdowns, new plants coming
on board or a Listeria outbreak, macroeconomic issues
such as consumption trends
and global trade policy, and
the perishability of milk.
Traders like Kurzawski
and Meyer also remind that
psychology, greed and fear
come into play as well. It's
not unheard of, Meyer says,
for the market to swing on
the movement of a mere 100
loads of cheese.
How can pizzerias
better manage cheese
prices?
* Investigate riskmanagement programs.

Pizzeria operators should always start to manage cheese
costs by talking with their
supplier. Many vendors offer
programs that can help pizzerias address marketplace
volatility, including hedging
programs and quarterly pricing as well as cost-plus or
fixed-forward contracts.
"Ask about these programs and see what you can
lock in," Kurzawski says.
* Adopt the long view.

While most want to hit an
immediate home run with
cheese prices, Kurzawski
urges operators, particularly
those who "lose sleep" over
cheese prices, to embrace a
long-term outlook. Specifically, he suggests seizing
some certainty by purchasing a defined percentage of
the pizzeria's needed cheese
inventory at a fixed cost.
"There might be times

you pay more [than the
going rate] and times you
pay less, but this will help
reduce price volatility,"
he says. "Wrap your head
around what a good price is
and then decide if you really
want cost certainty around
this item."
* Raise prices. Raising
menu prices is typically the
action of last resort, but
might be necessary, particularly if cheese prices
skyrocket.
If per-pound cheese prices
climbed 50 cents, Rapid
Fired Pizza co-founder Ray
Wiley estimates that would
increase his food costs on
a pizza about one percent.
While Rapid Fired's
14 eateries would likely absorb that kind of rise in food
costs, a more substantial
increase could spur higher
menu prices.
"We always hate to go to
the menu board, but sometimes that's on the table
when costs escalate," Wiley
says.

cheese.
"Each week, then, we know
our over and short on cheese
and can manage our cheese
process better," he says.
* Order up. When cheese
prices reach a favorable level,
Cooney doesn't hesitate to
increase his order size -
regardless of any supplier
resistance.
"We've got numbers we
have to hit, too," Cooney

says, reminding his fellow
operators to consider storage
capacity and to rotate inventory whenever they increase
the size of their traditional
order. n
Chicago-based writer DANIEL
P. SMITH has covered business
issues and best practices for a
variety of trade publications,
newspapers, and magazines.

* Address kitchen
operations. While opera-

tors cannot control cheese
prices, they can control their
kitchen operations.
Rather than purchasing
pre-shredded cheese from
his suppliers, a commodity more susceptible to
price volatility given deeper
connections to labor and
shipping costs, Collier favors
block cheese that his kitchen
staff then grinds daily.
On the inventory side,
meanwhile, Collier directs
kitchen staff to weigh cheese
for every pizza to avoid
overuse, while he also completes a weekly ideal cost on
every line item, especially
M AY 2 0 1 7 / P I Z Z AT O D AY. C O M / 5 1


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Pizza Today - May 2017

Table of Contents for the Digital Edition of Pizza Today - May 2017

Pizza Today - May 2017
Commentary
Contents
Contributors
Expo Spotlight
Interact
Conversation
Man on the Street
Respecting the Craft
On Tap
Destinations
Knead to Know
Flooring Options
Specialty Cheese Pairings
Manchego
Eliminating Spoilage
Cheese Pricing
Grand Openings
Pizza Today on the Road: Riverboat Pizza Co., Savannah, GA
Pizza Today on the Road: Stoner’s Pizza Joint, Savannah, GA
International Pizza Expo Wrap Up
Product Showcase
Pizza Today Yellow Pages
The Marketplace
Reader’s Resource
Trending Recipe
Pizza Today - May 2017 - CT1
Pizza Today - May 2017 - CT2
Pizza Today - May 2017 - Pizza Today - May 2017
Pizza Today - May 2017 - Cover2
Pizza Today - May 2017 - Commentary
Pizza Today - May 2017 - 4
Pizza Today - May 2017 - 5
Pizza Today - May 2017 - Contents
Pizza Today - May 2017 - 7
Pizza Today - May 2017 - 8
Pizza Today - May 2017 - 9
Pizza Today - May 2017 - Contributors
Pizza Today - May 2017 - 11
Pizza Today - May 2017 - Expo Spotlight
Pizza Today - May 2017 - 13
Pizza Today - May 2017 - Interact
Pizza Today - May 2017 - 15
Pizza Today - May 2017 - Conversation
Pizza Today - May 2017 - 17
Pizza Today - May 2017 - Man on the Street
Pizza Today - May 2017 - 19
Pizza Today - May 2017 - Respecting the Craft
Pizza Today - May 2017 - 21
Pizza Today - May 2017 - On Tap
Pizza Today - May 2017 - 23
Pizza Today - May 2017 - Destinations
Pizza Today - May 2017 - 25
Pizza Today - May 2017 - Knead to Know
Pizza Today - May 2017 - 27
Pizza Today - May 2017 - 28
Pizza Today - May 2017 - 29
Pizza Today - May 2017 - Flooring Options
Pizza Today - May 2017 - 31
Pizza Today - May 2017 - 32
Pizza Today - May 2017 - 33
Pizza Today - May 2017 - Specialty Cheese Pairings
Pizza Today - May 2017 - 35
Pizza Today - May 2017 - 36
Pizza Today - May 2017 - 37
Pizza Today - May 2017 - 38
Pizza Today - May 2017 - 39
Pizza Today - May 2017 - Manchego
Pizza Today - May 2017 - 41
Pizza Today - May 2017 - 42
Pizza Today - May 2017 - 43
Pizza Today - May 2017 - Eliminating Spoilage
Pizza Today - May 2017 - 45
Pizza Today - May 2017 - 46
Pizza Today - May 2017 - 47
Pizza Today - May 2017 - Cheese Pricing
Pizza Today - May 2017 - 49
Pizza Today - May 2017 - 50
Pizza Today - May 2017 - 51
Pizza Today - May 2017 - Grand Openings
Pizza Today - May 2017 - 53
Pizza Today - May 2017 - 54
Pizza Today - May 2017 - 55
Pizza Today - May 2017 - Pizza Today on the Road: Riverboat Pizza Co., Savannah, GA
Pizza Today - May 2017 - 57
Pizza Today - May 2017 - 58
Pizza Today - May 2017 - 59
Pizza Today - May 2017 - Pizza Today on the Road: Stoner’s Pizza Joint, Savannah, GA
Pizza Today - May 2017 - 61
Pizza Today - May 2017 - 62
Pizza Today - May 2017 - 63
Pizza Today - May 2017 - International Pizza Expo Wrap Up
Pizza Today - May 2017 - 65
Pizza Today - May 2017 - 66
Pizza Today - May 2017 - Product Showcase
Pizza Today - May 2017 - 68
Pizza Today - May 2017 - 69
Pizza Today - May 2017 - Pizza Today Yellow Pages
Pizza Today - May 2017 - 71
Pizza Today - May 2017 - 72
Pizza Today - May 2017 - 73
Pizza Today - May 2017 - 74
Pizza Today - May 2017 - 75
Pizza Today - May 2017 - 76
Pizza Today - May 2017 - 77
Pizza Today - May 2017 - The Marketplace
Pizza Today - May 2017 - 79
Pizza Today - May 2017 - 80
Pizza Today - May 2017 - 81
Pizza Today - May 2017 - 82
Pizza Today - May 2017 - 83
Pizza Today - May 2017 - 84
Pizza Today - May 2017 - 85
Pizza Today - May 2017 - 86
Pizza Today - May 2017 - 87
Pizza Today - May 2017 - 88
Pizza Today - May 2017 - Reader’s Resource
Pizza Today - May 2017 - Trending Recipe
Pizza Today - May 2017 - Cover3
Pizza Today - May 2017 - Cover4
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